Self-Employed Mortgages

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Can You Get a Mortgage While Self Employed?

Yes, you can get a mortgage if you’re self employed.

Lenders assess self employed mortgage applications differently from those of employed applicants because your income may fluctuate from year to year. However, being self employed does not automatically make it harder to secure a mortgage.

How to Get a Mortgage When Self-Employed

Getting a mortgage when self employed follows a similar process to a standard residential mortgage application, although lenders may ask for additional evidence of income.

Usually, the process involves:

• Reviewing your income and affordability.
• Checking your credit profile.
• Gathering supporting documentation.
• Comparing suitable lenders and mortgage products.
• Submitting the application.
• Receiving a mortgage offer, subject to underwriting.

At Pure Property Finance, we work with a wide range of lenders to identify those most suited to your circumstances, helping you navigate the application process from start to finish.

Self Employed Mortgage Requirements

Every lender has its own criteria, but common self employed mortgage requirements include:

• Proof of identity and address.
• SA302 forms or Tax Year Overviews.
• Certified accounts prepared by an accountant.
• Business bank statements.
• Personal bank statements.
• Evidence of your deposit.
• Details of any outstanding credit commitments.

Many lenders prefer to see at least two years of trading history, although some may consider applications from those with only one year’s accounts.

How Many Months’ Payslips Do You Need to Provide for a Self Employed Mortgage?

Unlike employed applicants, self employed borrowers generally do not provide payslips.

Instead, lenders usually request evidence of income through tax calculations, tax year overviews or company accounts. If you operate through a limited company and pay yourself via PAYE, payslips may be requested alongside dividend information.

How Many Years’ Self Employed Do You Need for a Mortgage?

A common question is how many years’ self employed are required for mortgage approval.

Most lenders prefer applicants to have at least two years of accounts or tax returns. However, some lenders may consider borrowers with just one year of self employment, particularly where there is previous experience in the same industry or strong affordability.

If you’ve recently become self employed, it’s still worth exploring your options with a specialist mortgage adviser.

How Much Mortgage Can a Self Employed Person Borrow?

The amount you can borrow depends on factors such as:

• Your annual income.
• The consistency of your earnings.
• Existing financial commitments.
• Your credit history.
• The size of your deposit.
• The lender’s affordability criteria.

Many lenders offer borrowing levels similar to those available to employed applicants. Generally, mortgage providers may lend a multiple of your income, although this varies between lenders.

If you’re asking, “How much mortgage can I get self employed?”, speaking to an adviser can help provide a clearer indication based on your individual circumstances.

How Does a Self Employed Mortgage Differ From a Residential Mortgage?

In many ways, a self employed mortgage is simply a residential mortgage assessed using different income verification methods.

The mortgage products themselves are often the same. The primary difference lies in how lenders evaluate affordability.

For employed applicants, lenders typically review payslips and employment contracts.

For self employed applicants, lenders may assess the net profits for sole traders, as well as salary and dividends for limited company directors. They’ll also look at the share of profits for business partners, and in some circumstances, any retained profits.

This means choosing the right lender is particularly important, as the criteria can vary significantly.

Why Choose Pure Property Finance?

At Pure Property Finance, we understand that no two self employed borrowers are the same.

Our team has experience supporting a wide range of clients, including business owners, freelancers and company directors. We take the time to understand your circumstances and identify lenders whose criteria align with your income structure.

By working with a broad panel of lenders, we aim to make the mortgage process as straightforward as possible and help you secure a solution that meets your needs.

Great reasons to choose Pure:

• Experienced finance experts
• Helpful, but not pushy
• Fast finance turnaround

FAQs About Self-Employed Mortgages

Can you get a mortgage while self employed?

Of course! At Pure Property Finance, we specialise in finding self employed mortgage applications that other brokers might shy away from.

How many months’ payslips do you need to provide for a self employed mortgage?

Technically, self-employed individuals do not provide payslips. However, UK lenders still require proof of your taxable income, which is usually through 1 to 3 years of finalised accounts, an HMRC tax calculation (SA302), and a tax year overview.

How much can a self employed person borrow on their mortgage?

It depends on a few factors, but normally, self-employed people can borrow between 4 to 5.5 times their annual income. The UK lender will take into consideration your specific income type, business structure, and deposit amount.

How does a self employed mortgage differ to a residential mortgage?

Technically, a self employed mortgage is the same as a standard residential mortgage. The only difference is the assessment process and how self-employed workers can prove their income.